Investor Deerfield Management gets warrants for 6.1 million shares
By Devika Patel
Knoxville, Tenn., Sept. 16 - Imris Inc. said it arranged a $25 million secured loan facility with Deerfield Management Co., LP.
The 9% loan is payable in three equal annual installments on the third, fourth and fifth anniversaries of the disbursement date. If Imris achieves certain revenue targets, the principal payment due on the third anniversary can be deferred for up to two years and the payment due on the fourth anniversary can be deferred for one year.
Deerfield also will receive warrants for 6.1 million shares. Each warrant is exercisable at $1.94. The strike price reflects a 4.87% premium to the Sept. 13 closing share price of $1.85.
Cowen & Co. was the arranger.
The loan provides capital to fund the company's growth initiatives and strengthen its balance sheet, president and chief executive officer Jay D. Miller said in a press release.
The Winnipeg, Man., company designs, manufactures and markets the Visius Surgical Theatre, a surgical environment that provides intraoperative vision to clinicians.
| Issuer: | Imris Inc.
|
| Issue: | Secured loan facility
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| Amount: | $25 million
|
| Maturity: | Five years
|
| Coupon: | 9%
|
| Warrants: | For 6.1 million shares
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| Warrant strike price: | $1.94
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| Investor: | Deerfield Management Co., LP
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| Arranger: | Cowen & Co.
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| Pricing date: | Sept. 16
|
| Stock symbol: | Nasdaq: IMRS
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| Stock price: | $1.85 at close Sept. 13
|
| Market capitalization: | $95.51 million
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